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Stock X has the following data. Assuming the stock market is efficient and the stock is in equilibrium, which of the following statements is CORRECT?
Stock X has the following data. Assuming the stock market is efficient and the stock is in equilibrium, which of the following statements is CORRECT?
Expected dividend, D1 | $4.56 |
Current Price, P0 | $57.00 |
Expected constant growth rate | 8.0% |
Group of answer choices
The stock's expected dividend yield and growth rate are equal.
The stock's required return is 14.00%.
The stock's expected capital gains yield is 7.00%.
The stock's expected price 10 years from now is $133.
The stock's expected dividend yield is 7.00%.
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